Independent and alternative grocers commonly face a technology disadvantage, as major chains are better able to handle the up-front costs of more sophisticated, efficiency-enhancing tools. 

The current technological advance is electronic shelf labels (ESL), which allow for store-wide price changes with the press of a key. They are becoming commonplace at chain grocers, but much less common in smaller stores. 

Before ESLs, most other key technology changes in grocery stores – scanning machines that speed up checkout and allow for self-checkout, phone apps that facilitate discounting and loyalty programs, online ordering – were adopted by major chains with the resources to invest in these innovations. 

Consumers Council of Canada interviewed multiple independent grocers as part of research for a soon-to-be released report.  Most of the independent grocers interviewed fell into the ‘we’re looking at it, but can’t quite afford it yet’ category when it came to spending on ESLs. 

“For a small independent store, it’s quite expensive,” said one grocer. “We’re looking forward to (costs) dropping further as it’s being adopted in the industry. It is rapidly dropping, so in some point in the future, we will make the switch as well.” 

“We’re just waiting on price to come down, to be honest,” said another. “We don’t like putting up paper signs everywhere and doing all that.” 

The most obvious benefit to ESL is that paper labels are labour intensive and subject to error. But ESL provide advantages beyond the labour and paper savings. They can be more attractive, can contain more information, and can make unit pricing easier to display. More advanced digital signage can also allow for scrolling so consumers can find nutritional information, countries of origin and can use QR codes to link devices to additional information about product contents, special offers or discounts. They can be integrated with inventory systems, also, so store staff can signal from the isles when a shelf needs restocking. 

The ability to display unit pricing on store shelves will become more important when legislation making that mandatory is passed. Most major chains do display unit prices for packaged goods, but many independents do not. 

ESLs also make it easier for merchants to change prices more frequently. Though consumers often object to dynamic pricing or time-based pricing, it does allow retailers to offer special one-hour price reductions, or pre-programmed price reductions as produce approaches ‘best before’ dates, automatically linked to checkout systems. 

That improved convenience and business efficiency comes with a price, in hardware, software, design and staff training. An online presentation by one leading U.S. ESL vendor claims the systems pay for themselves (benefits exceed the costs) within 18 to 24 months.

Still, some independents minimize technology. For example, self checkouts are the opposite of the friendly neighbourhood service vibe some of them prefer.